Why can one of my users not share his calendar?

We have a new employee that I set up with Outlook. We have Windows Server 2003 with Exchange. Outlook is connecting directly to it, not POPing. He can send and receive normally. His laptop is connected to our domain as he has access to his personal share and public share. He's running XP with Outlook 2003

So I click on "Contacts" in the navigation pane and there is no "Share My Contacts...". Next I tried right clicking "contacts" near the top, but "Sharing" is greyed out. It's probably something stupid I'm overlooking, but I've gone in circles with it and I can't figure it out.

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